OF GRAPHITE & ASSOCIATED MINERAL

 
CONTINUE READING
TENDER DOCUMENT
                                    FOR

                       E-AUCTION FOR

                        MINING LEASE

         OF GRAPHITE & ASSOCIATED MINERAL

                                OF

                   [   ] GRAPHITE BLOCK

                         DIRECTORATE
          DEPARTMENT OF MINES & GEOLOGY
              GOVERNMENT OF JHARKHAND

Tender No:

Forward Auction No:

Date & time of submission of tender:

Date & time of opening of tender:
Director Mines
                                   Directorate of Mines
              Department of Industries, Mines & Geology
                                  Government of Jharkhand
   Nepal House (Yojna Bhavan), Doranda, Ranchi - 834002, Email jhr_mines@yahoo.in

                           Notice Inviting Tender
“Invitation of Bid for grant of Mining Lease”
In exercise of the power conferred by Section 10B of the Mines and Minerals (Development And
Regulation) Act, 1957 and in accordance with Mineral (Auction) Rules, 2015 notified thereunder,
Government of Jharkhand has identified a graphite block for the purpose of grant of mining
lease in [ ] District, Jharkhand, through electronic auction and hereby invites bids in digital
format only, from eligible bidders.
Terms and conditions, deadlines etc. for participating in the electronic auction are provided in the
Tender Document. The Model Tender Document for the Mineral Block and Mineral Block
Summary are available free of cost in electronic form and can be downloaded from website of
MSTC [http://www.mstcecommerce.com/auctionhome/mlcl/index.jsp] for the purpose of
information only. Timelines, notification, updates and other details of the e-auction process are
available on the website of MSTC and Department of Mines & Geology from the website of Govt.
of Jharkhand http://www.jharkhand.gov.in/mines-geology.

Those interested and eligible for bidding can participate in the bidding only after online
purchase of the Tender Document on payment of the tender fee of INR [XXX] (Indian Rupees
XXX only) which is inclusive of GST@18%, from the website of e-auction platform provider.
After purchase of the Tender Document, eligible bidders can register themselves on the above
mentioned website. On successful registration, eligible bidder will obtain Login ID and password
necessary for participation in the e-auction process.

                                                                                Director Mines
                                                                Department of Mines & Geology
                                                                           Govt. of Jharkhand
Government of Jharkhand

                                  TENDER DOCUMENT
                                              FOR

                       "AUCTION OF MINING LEASE

                OF GRAPHITE & ASSOCIATED MINERAL

                                            FOR

                              [     ]GRAPHITE BLOCK”

          Department of Industries, Mines & Geology, Government of Jharkhand

        Third Floor, Yojana Bhawan, Nepal House, Doranda, Ranchi, Jharkhand- 834002
                         Phone No. 0651-2490235, Fax: 0651-2491607
                                 E-mail: jhr_mines@yahoo.in
                    Tender No.:                                    Dated:

Cost of Tender Document:                   INR [XXX] (inclusive of GST@18%)
                                           (Indian Rupees XXX only)
                                           (Non-Refundable) per Tender Document

Note: The cost of Tender Document has to be paid by the bidder through online banking channel to
the following bank account of MSTC.
Government of Jharkhand

Issued to

All prospective bidders

This Tender Document is non-transferable. The price of this Tender Document is INR [XXX] (Rupees XXX
only), which is inclusive of GST @ 18%.

A    copy    of    this   Tender   Document   is   available   on   the   website    of   MSTC     Ltd.,
, Jharkhand Govt. ;

Department of Mines & Geology ; and Govt. of India
 which cannot be used for the purpose of bidding and is only intended for the
information of the public .

         2
Table of Contents

1.    Important information ....................................................................................................................... 5

2.    Definitions ......................................................................................................................................... 7

3.    Introduction ....................................................................................................................................... 9

4.    The Concession Area ..................................................................................................................... 10

5.    Eligibility ......................................................................................................................................... 11

6.    Review period and site visit .................................................................................................................13

7.    Pre-bid conference ......................................................................................................................... 14

8.    Tender process...................................................... …………………………………………………….16

      A.          First round of e-auction………………………………………………………………………....16

      B.          Second round of e-auction ...............................................................................................18

9.    Reserve Price………………………………………………………………………………………………20

10.   Declaration of Successful Bidder and Grant of Mining Lease …………………………………………21
      10.1. Issuance of letter of intent: ...................................................................................................21
      10.2. Declaration as a Successful Bidder: .....................................................................................21
      10.3. Execution of Mine Development and Production Agreement: ..............................................21
      10.4. Grant of mining lease: ..........................................................................................................22

11.   Timetable……………………………………………………………………………………………………23

12.   Payments by the Successful Bidder……………………………………………………………………...25
      12.1. Upfront Payment ...................................................................................................................25
      12.2. Periodic payments ................................................................................................................25

13.   General conditions regarding tender process…………………………………………………………...26
      13.1. Submission of Technical Bid ................................................................................................26
      13.2. Language ..............................................................................................................................26
      13.3. Documents and information ..................................................................................................27
      13.4. Overriding effect ...................................................................................................................27
      13.5. Cost of bidding ......................................................................................................................27
      13.6. Verification of information by the Bidders .............................................................................27
      13.7. Verification by the State Government and disqualification ...................................................28
      13.8. Amendment of Tender Document ........................................................................................29
      13.9. Bid Due Date and extension .................................................................................................29
      13.10. Modifications/ substitution/ withdrawal of bids ....................................................................29
      13.11. Rejection of bids .................................................................................................................29
      13.12. Validity of bids .....................................................................................................................30
      13.13. Change affecting the Bidder ...............................................................................................30
13.14. Minor deviations ..................................................................................................................30

14.    Bid Security .................................................................................................................................... .31

15.    Fraud and Corrupt Practices………………………………………………………………………………33

16.    Other provisions…………………………………………………………………………………………….35
       16.1. Governing law .......................................................................................................................35
       16.2. Right of State Government ....................................................................................................35
Schedule I: Format of Technical Bid……………………………………………………………………………….36
      A. General instructions: ....................................................................................................................36
      B. Bid letter .......................................................................................................................................36
                  (1) Instructions for submission of the bid letter ...................................................................36
                  (2) Format of bid letter ........................................................................................................38
      C. Bid Security .................................................................................................................................41
                  (1) Instructions for submission of the Bid Security ..............................................................41
                  (2) Format of Bid Security ...................................................................................................41
      D. Power of attorney ........................................................................................................................44
                  (1) Instructions for submission of the power of attorney .....................................................44
                  (2) Format of power of attorney ..........................................................................................45
      E. Affidavit ........................................................................................................................................46
                  (1) Instructions for submission of the affidavit .....................................................................46
                  (2) Format of Affidavit ..........................................................................................................47
Schedule II: Format for seeking clarification regarding Tender Document…………………………………….48
Schedule III: Technical details regarding online electronic auction……………………………………………..49
Schedule IV: Format of MDPA……………………………………………………………………………………...60
Schedule V: Format of Information Memorandum………………………………………………………………..94

      4
1.      Important information

     1.1.   This Tender Document has been issued pursuant to notification of an area with the intent
            to carry out e-auction for grant of a mining lease for mineral specified herein, pursuant to
            the Act and the rules made thereunder. All information provided in this Tender Document
            shall be read together with the Act and the rules made thereunder. In the event of a conflict
            between this Tender Document and the Act or the rules, the Act or the rules, as the case
            may be, shall prevail.
     1.2.   The information contained in this Tender Document or subsequently provided to Bidder(s),
            whether verbally or in documentary or any other form by or on behalf of the State
            Government or any of its employees or advisors, is provided to Bidder(s) on the terms
            and conditions set out in this Tender Document.
     1.3.   This Tender Document is neither an agreement nor an offer by the State Government
            to the prospective Bidders or any other person. The purpose of this Tender Document
            is to provide interested parties with information that may be useful to them in making
            their bids pursuant to this Tender Document. This Tender Document includes statements
            which reflect various assumptions and assessments arrived at by the State Government
            in relation to the mineral block. Such assumptions, assessments and statements do not
            purport to contain all the information that each Bidder may require. This Tender Document
            may not be appropriate for all persons, and it is not possible for the State Government,
            its employees or advisors to consider the investment objectives, financial situation and
            particular needs of each party who reads or uses this              Tender Document. The
            assumptions, assessments, statements and information contained in the Tender Document
            may not be complete, accurate, adequate or correct. Each Bidder should, therefore,
            conduct its own investigations and analysis and should check the accuracy, adequacy,
            correctness, reliability and completeness of the assumptions, assessments, statements
            and information contained in this Tender Document and obtain independent advice from
            appropriate sources.
     1.4.   Information provided in this Tender Document to the Bidder(s) has been collated from
            several sources some of which may depend upon interpretation of Applicable Law. The
            information given is not intended to be an exhaustive on account of statutory requirements
            and should not be regarded as complete. The State Government accepts no responsibility
            for the accuracy or otherwise for any statement contained in this Tender Document.
     1.5.   The State Government, its employees and advisors make no representation or warranty and

        5
shall have no liability to any person, including any Bidder under any law, statute, rules or
        regulations or tort, principles of restitution or unjust enrichment or otherwise for any loss,
        damages, cost or expense which may arise from or be incurred or suffered on account of
        anything contained in this Tender Document or otherwise, including the accuracy, adequacy,
        correctness, completeness or reliability of the Tender Document and any assessment,
        assumption, statement or information contained therein or deemed to form part of this Tender
        Document or arising in any way from participation in this tender process.
1.6.    The State Government also accepts no liability of any nature howsoever caused arising from
        reliance of any Bidder upon the statements contained in this Tender Document.
1.7.    The State Government may in its absolute discretion, but without being under any obligation
        to do so, update, amend or supplement the information, assessment or assumptions
        contained in this Tender Document.
1.8.    The issue of this Tender Document does not imply that the State Government is bound to
        select a Bidder or to appoint the Preferred Bidder as Successful Bidder for the mineral block
        and the State Government reserves the right to reject all or any of the Bidders or bids without
        assigning any reason whatsoever.
1.9.    Each Bidder shall bear all its costs associated with or relating to the preparation and
        submission of its bid including but not limited to preparation, copying, postage, delivery fees,
        expenses associated with any demonstrations or presentations which may be required by the
        State Government or any other costs incurred in connection with or relating to its bid.
1.10.   This Tender Document is not transferable. The price paid by the Bidder for the Tender
        Document shall not be refunded.

   6
2.   Definitions

     The words and expressions used herein but not defined herein shall have the same meaning
     as assigned to them in the Act or the rules made thereunder. The following definitions apply to
     this Tender Document, unless the context otherwise requires:
             2.1.    “Act” means the Mines and Minerals (Development and Regulation) Act,
                     1957.

             2.2.    “Applicable Law” shall mean all applicable statutes, laws, by-laws, rules,
                     regulations, orders, ordinances, protocols, codes, guidelines, policies, notices,
                     directions, judgments, decrees or other requirements or official directive of
                     any governmental authority or court or other law, rule or regulation approval
                     from the relevant governmental authority, government resolution, directive, or
                     other government restriction or any similar form of decision of, or determination
                     by, or any interpretation or adjudication having the force of law in India.

             2.3.    “Auction Rules” means the Mineral (Auction) Rules, 2015 and its amendments

             2.4.    “Bidder” means a person who has purchased this Tender Document, and the
                     expression Bidders shall include all such persons.

             2.5.    “Bid Due Date” means the date on which the Technical Bid and the initial
                     price offer is required to be submitted in accordance with Clause 8.1(A)(a).

             2.6.    “Bid Security” means bid security as referred to in Clause 14.

             2.7.    “Concession Area” means 118 hectares as more particularly described in the
                     Information Memorandum

             2.8.    “Information Memorandum” means the information memorandum provided
                     separately containing amongst others, information specified in Clause 4.1.

             2.9.    “MDPA” means the Mine Development and Production Agreement in the
                     format as specified in Schedule IV (Format of MDPA).

             2.10.   “Performance Security” means a bank guarantee in the format as provided in
                     Schedule III of the Auction Rules or a non-interest bearing security deposit to be
                     provided pursuant to the Auction Rules.

             2.11.   “State Government” means Government of Jharkhand.

             2.12.   “Tender Document” means this tender document together with the schedules
                     and documents referred herein, including the Information Memorandum and
                     any addenda to this Tender Document.

             2.13.   “Upfront Payment” means an amount equal to INR [             ] /- (Rupees

     7
XXX only) payable pursuant to the Auction Rules.

8
3.   Introduction

           3.1.     The Act stipulates grant of mining lease (as defined in clause (b) of sub-rule (1)
                    of rule (2) of the Auction Rules) through e-auction in respect of minerals which
                    vest in the government other than minerals specified in Part A or Part B of the
                    First Schedule of the Act and minor minerals as defined in clause (e) of section 3
                    of the Act.

           3.2.     In exercise of powers conferred by the section 13 of the Act, the Central
                    Government has notified the Mineral (Auction) Rules, 2015 and the Minerals
                    (Evidence of Mineral Contents) Rules, 2015. The Bidders are encouraged to
                    acquaint themselves with the Act and the rules made thereunder.

           3.3.     This Tender Document is being issued by the State Government, for e-auction
                    for grant of a mining lease over the Concession Area.

           3.4.     The e-auction would be conducted in accordance with the Act, the Auction
                    Rules, the Minerals (Evidence of Mineral Content) Rules, 2015, any other
                    order or notification issued by the Central Government pursuant to the Act and
                    this Tender Document.

     9
4.    The Concession Area

          4.1.   The following information regarding the Concession Area is included in a separate
                 “Information Memorandum” attached along with this Tender Document as Schedule
                 V:

                 (i)     Precise map of the Concession Area identified including geographical co-
                         ordinates, revenue survey particulars, demarcated using total station      and
                         Differential Global Positioning System and divided into forest land, land owned
                         by the State Government and land not owned by the State Government;

                 (ii)    Estimated mineral resources of minerals found in the identified Concession
                         Area determined pursuant to the Minerals (Evidence of Mineral Content)
                         Rules, 2015;

                 (iii)   An indicative list of clearances and permissions required to be obtained with
                         respect to such area for commencing mining operations and

                 (iv)    Geological report of the Concession Area.

      4.2.       Bidders are strongly encouraged to review the Information Memorandum.

     10
5.    Eligibility

      Pursuant to Rule 6 of the Auction Rules, the eligibility for participating in the e- auction
      shall be as follows:

      a) The Bidder must meet the Conditions specified in section 5 of the Act which is quoted below:

          “5.      Restrictions on the grant of prospecting licenses or mining leases

                   (1) A State Government shall not grant a reconnaissance permit, prospecting license
                        or mining lease to any person unless such person--

                        (a) is an Indian national, or company as defined in clause (20) of section 2 of the
                        Companies Act, 2013 (18 of 2013); and

                        (b) satisfies such conditions as may be prescribed:

                        Provided that in respect of any mineral specified in Part A and Part B of the First
                        Schedule, no reconnaissance permit, prospecting licence or mining lease shall
                        be granted except with the previous approval of the Central Government.

                    Explanation.--For the purposes of this sub-section, a person shall be deemed to be
                    an Indian national,

                        (a) in the case of a firm or other association of individuals, only if all the members
                             of the firm or members of the association are citizens of India; and

                        (b) in the case of an individual, only if he is a citizen of India.

                (2) No mining lease shall be granted by the State Government unless it is satisfied that-

                        (a) there is evidence to show the existence of mineral contents in the area for
                             which the application for a mining lease has been made in accordance with
                             such parameters as may be prescribed for this purpose by the Central
                             Government;

                        (b) there is mining plan duly approved by the Central Government, or by the
                             State Government, in respect of such category of mines as may be specified
                             by the Central Government, for the development of mineral deposits in the
                             area concerned.

                             Provided that a mining lease may be granted upon the filing of a mining plan
                             in accordance with a system established by the State Government for
                             preparation, certification, and monitoring of such plan, with the approval of
                             the Central Government.”

     11
b) The Bidder must meet the terms and conditions regarding eligibility as stipulated in Schedule
         I of the Auction Rules for e-auction of Concession Area for grant of mining lease, as quoted
         below:

         “1    As Value of Estimated Resources is more than Rupees 1000 Crores, the applicant,
               including an individual, shall have a net worth of more than 2% of Value of Estimated
               Resources.”

               Explanation:

              1) In case an applicant is a subsidiary of another company incorporated in India, the
                   net worth of such holding company may also be considered.

                   Provided that, in such case, the applicant must continue to be a subsidiary of such
                   holding company until such time the applicant meets the aforementioned net worth
                   threshold.

              2) In case of a Company, the Net worth shall be the sum of paid up share capital and
                   the free Reserves as per the audited Balance Sheet of the financial year ended
                   immediately preceding the date of issuance of notice inviting tender.
              3) In case the notice inviting tender is issued between 1st April to 30th September
                   (both days inclusive) of a year, the audited balance sheet of the financial year
                   before the immediately preceding financial year, from the date of issuance of
                   notice inviting tender, may be submitted by the bidder, if the audited balance sheet
                   of the immediately preceding financial year is not available.
              4)   In case of an individual, the Net worth shall be the closing cash balance on the last
                   date for submission of application, and such amount may include amount in Savings
                   Bank accounts in Scheduled Bank/ Post Office, free and un-encumbered Fixed
                   Deposits in Scheduled Banks, Post Office, Listed Companies/ Government
                   Organisation/ Public Sector Undertaking of State and Central Government, Kisan
                   Vikas Patra, National Saving certificate, Bonds, Shares of Listed Companies, Listed
                   Mutual Funds, Unit Linked Insurance Plan, Public Provident Fund, Surrender Value
                   of Life Insurance policies an un- encumbered immovable property in the name of the
                   Applicant.

c)      The eligibility conditions shall be used only for the purposes of determining eligibility for
        participating in the e-auction. The Successful Bidder shall be decided solely on the basis of
        Final Price Offer submitted by the eligible Bidders.

 12
6.    Review period and site visit

      6.1.   Pursuant to sub-rule (3) of Rule 9 of the Auction Rules, the Bidders shall be
             provided a fixed period of 45 days to study the Tender Document and the
             bidding process shall commence only after such period of 45 days.

      6.2.   Such period of 45 days would commence on [XXX] (date of NIT) and would
             end on [XXX].

      6.3.   During such period the Bidders may undertake the site visit to Concession
             Area at their cost and risk to ascertain for themselves the site conditions,
             location, communication, climate, availability of power, and any other matter
             considered relevant by them.

      6.4.   This Tender Document does not however give the unconditional or unrestricted
             right to access the Concession Area. The site visit must be in compliance with
             Applicable Law and rights of person(s) having surface rights over the Concession
             Area.

      6.5.   In the event a Bidder undertakes a site visit, then such Bidder shall be liable
             towards any loss or damage caused to the site and/ or the person(s) having
             surface rights over the Concession Area, on account of any act or omission of
             such Bidder or its employees, authorized representatives, agents, advisors etc.

      6.6.   The site visit to the Concession Area shall be conducted with prior notice to the
             State     Government        through      the     following     email      address
             jhr_mines@yahoo.in .

     13
7.    Pre-bid conference

      7.1.    Bidders may seek clarifications or request further information regarding this
              Tender Document.

      7.2.    Any queries or requests for additional information concerning this Tender
              Document may be sent by e-mail to the State Government to jhr_mines@yahoo.in
              in the format specified in Schedule II (Format for seeking clarifications regarding
              the Tender Document).

      7.3.    The email should clearly bear the following subject line: “Queries/ Request
              for Additional Information: Tender Document for “ XXX Graphite Block”.

      7.4.    Each query should contain complete details of facts, information and Applicable
              Law relevant to the query and also the particulars of the person posing the query.
              The State Government reserves the right to not answer any query, including any
              query which is incomplete or anonymous.

      7.5.    The queries should be emailed on or before the date specified in Clause 11 for
              receiving queries.

      7.6.    The State Government shall endeavor to respond to the queries within the period
              specified in Clause 11. However, the State Government reserves the right to not
              respond to any question or provide any clarification, in its sole discretion, and
              nothing in this Tender Document shall be taken or read as compelling or requiring
              the State Government to respond to any question or to provide any clarification.

      7.7.    The State Government shall publish the queries for which response has been
              provided on a website, without identifying the source of queries.

      7.8.    Pre-bid conference(s) of the Bidders shall be convened at the designated date
              as mentioned in Clause 11 at a time and place specified by the State
              Government. Only those persons who have purchased the Tender Document
              shall be allowed to participate in the pre-bid conferences.

      7.9.    A maximum of three representatives of each Bidder shall be allowed to participate
              on production of duly issued authority letter from the Bidder and identity
              documents. During the course of pre-bid conference(s), the Bidders may seek
              additional clarifications and make suggestions for consideration of the State
              Government.

      7.10.   The State Government shall endeavor to provide clarifications and such further
              information, as it may, in its sole discretion, consider appropriate for facilitating
              a fair, transparent and competitive tender process.

     14
7.11.   The State Government may also on its own motion, if deemed necessary, issue
         interpretations and clarifications to all Bidders. All clarifications and interpretations
         issued by the State Government shall be deemed to be part of the Tender
         Document. Provided, however, that any non-written clarifications and information
         provided by the State Government, its employees or representatives in any
         manner whatsoever shall not in any way or manner be binding on the State
         Government.

15
8.    Tender process
           8.1.       Pursuant to sub-rule (4) of Rule 9 of the Auction Rules, the e-auction shall
                      be an ascending forward online electronic auction and shall comprise
                      of attempts of auction with each attempt of auction consisting of a first
                      round of auction and a second round of auction:
           A.         First round of e-auction
                      (a)          In the first round, the Bidders shall be required to submit on
                                   or prior to [XXX] (IST) on [XXX] (“Bid Due Date”):
                                   (i)     the Technical Bid; and
                                   (ii)    Initial price offer, which shall be a percentage of Value of
                                           Mineral Despatched and must be equal to or greater
                                           than the Reserve Price as specified in Clause 9.
                      The Technical Bid and the initial price offer must be submitted
                      electronically as provided in Schedule III (Technical details regarding
                      electronic auction).

                (b)          The Technical Bid shall be evaluated to ascertain compliance of
                             the Bidder with the eligibility conditions and requirements under
                             this Tender Document. While examining the Technical Bids the
                             State Government may consider such parameters as it may deem
                             relevant, including considerations that the Technical Bid:
                             (i)          is received as per the prescribed formats along with all
                                          required documents and information;
                            (ii)          is received by the Bid Due Date including any extension
                                          thereof;
                        (iii)             is submitted electronically in the manner prescribed in
                                          Schedule       III    (Technical details regarding electronic
                                          auction);
                         (iv)             contains all the information (complete in all respects) including
                                          the initial price offer as requested in this Tender Document;
                            (v)           does not contain any condition or qualification;
                         (vi)             only one Technical Bid has been made by the Bidder;
                        (vii)             the initial price offer is equal to or greater than the Reserve
                                          Price; and
                       (viii)             is generally considered to be in compliance in terms of any
                                          other parameters as may be considered relevant by the
                                          State Government.

     16
(c)   Only those Bidders who are found to be eligible in accordance
           with the prescribed eligibility conditions and whose initial price offer is
           equal to or greater than the Reserve Price and whose bids meet the
           requirements under this Tender Document shall be declared as the
           “Technically Qualified Bidders”.
     (d)   The highest initial price offer amongst the Technically Qualified
           Bidders shall be the floor price for the second round of online
           electronic auction (“Floor Price”).
     (e)   The Technically Qualified Bidders shall be ranked on the basis of
           the descending initial price offer submitted by them. On the basis of
           such ranking the Technically Qualified Bidders, holding first fifty per
           cent of the ranks (with any fraction rounded off to higher integer) or
           the top five Technically Qualified Bidders, whichever is higher, shall
           be considered to be qualified for participating in the second round
           of online electronic auction (the “Qualified Bidders”). Intimation
           shall be restricted only to the Qualified Bidders.

           Provided that where the total number of technically qualified bidders is
           less than three, then no technically qualified bidder shall be
           considered to be qualified bidder and the e- auction process shall be
           annulled.
           On annulment of the first attempt of auction, the State Government may
           decide to–
           (i) commence the auction process de novo with a separate set of terms and
           conditions and reserve price as it may deem fit and necessary; or
           (ii) conduct the second attempt of auction.
           In case the State Government decides to conduct the second attempt of
           auction as per clause (ii) above, the terms and conditions of the second
           attempt of auction shall remain the same as in the first annulled attempt of
           auction:
           Provided that the highest initial price offer of the technically qualified bidders,
           if any, in the first annulled attempt shall be the reserve price in first round of
           the second attempt:
           Provided further that the bidding shall continue to the second round even in
           case the number of technically qualified bidders is less than three.

           Provided also that if the number of technically qualified bidders is
           between three and five, then all the technically qualified bidders shall
           be considered as qualified bidders:
           Provided also that in the event of identical initial price offers being
           submitted by two or more technically qualified bidders, all such
           technically qualified bidders shall be assigned the same rank for the
           purposes of determination of qualified bidders and in such case, the
           aforementioned fifty per cent shall stand enhanced to the extent of tie

17
occuring within the first fifty percent

                 Illustration:
                 (i)      In the event there are a total of ten Technically Qualified
                          Bidders, and each Technically Qualified Bidder submits
                          different initial price offer, then the Technically Qualified
                          Bidders holding the first fifty per cent of ranks shall be
                          considered to be Qualified Bidders.
                 (ii)     In the aforementioned case, if three Technically Qualified
                          Bidders submit the same initial price offer and are ranked
                          in first fifty per cent of the total number of ranks, then
                          all the three Technically Qualified Bidders shall be
                          considered to be Qualified Bidders and the total number
                          of Qualified Bidders shall stand increased by two.
                                  a. The State Government is not obliged to provide
                                      any    explanation   or   clarification   on   their
                                      disqualification to Bidders who fail to qualify as
                                      Technically Qualified Bidders.

                                  b. Technical Bids shall be deemed to be under
                                      consideration immediately after the submission
                                      and until such time the State Government makes
                                      official intimation of award/ rejection to the
                                      Bidders. While the tender process is on-going,
                                      Bidders and/ or their representatives or other
                                      interested parties are advised to refrain, save
                                      and except as required/permitted under the
                                      Tender Document, from contacting by any
                                      means, the State Government and/ or their
                                      employees/ representatives on matters related
                                      to the bids under consideration.
                                  c. Save and except as provided in this Tender
                                      Document, the State Government shall not
                                      entertain any correspondence with any Bidder
                                      in relation to acceptance or rejection of any bid
                                      or the tender process.
     B.   Second round of e-auction

          (a)    In the second round, the Qualified Bidders may submit their final
                 price offers which shall be a percentage of Value of Mineral
                 Despatched (the “Final Price Offer”) which must be greater than

18
the Floor Price. The Final Price Offer may be revised till the
                     conclusion of the e-auction in accordance with the technical
                     specifications of the e-auction platform as specified in Schedule
                     III (Technical details regarding electronic auction).
            (b)      The e-auction process shall be annulled if none of the Qualified
                     Bidders submits a Final Price Offer on the online electronic
                     auction platform. In case the e-auction process is annulled due
                     to non-submission of at least one Final Price Offer on the
                     electronic auction platform, the Bid Security of the Qualified
                     Bidder(s) who has submitted the highest Initial Price Offer i.e. the
                     applicable Floor Price for the second round of e-auction, shall
                     be forfeited in accordance with Clause 14.6.
            (c)      The Qualified Bidder who submits the highest Final Price Offer
                     shall be declared as the “Preferred Bidder” immediately on
                     conclusion of the e-auction.

 8.2.   The mining lease shall be for the minerals found in the area pursuant to
        exploration prior to the e-auction:
        Provided that where, subsequent to the e-auction, any new mineral is
        discovered, then the holder of mining lease shall follow the provisions of the
        Mineral Concession Rules, 1960 for inclusion of such new mineral in the
        Mining Lease Deed.
        Where, prior to the e-auction or subsequent to the e-auction, presence of minor
        mineral is established or discovered, such minor minerals shall be dealt in
        accordance with rules made by the State Government under section 15 of the Act.

 8.3.   State Government to prescribe the manner in which the minor mineral would be
        extracted and payments related thereto in consonance with Rules made by the
        State Government under section 15 of the Act.

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9.    Reserve Price

           9.1.   The Reserve Price is [XXX] (percent) of Value of Mineral Despatched.
                  The “Value of Mineral Despatched” shall be an amount equal to the
                  product of,-

           (i)    Mineral despatched in a month

           (ii)   Sale price of the mineral (grade-wise and State-wise) as published
                  by Indian Bureau of Mines for such month of despatch.

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10.    Declaration of Successful Bidder and grant of mining lease

       Pursuant to Rule 10 of the Auction Rules, the mining lease shall be granted to the
       Successful Bidder in the following manner:
       10.1.    Issuance of letter of intent:
                A letter of intent shall be issued by the State Government only upon receipt of the
                first instalment of the Upfront Payment which is INR [XXX] (Rupees XXX only)
                from such Preferred Bidder.
                Declaration as a Successful Bidder:
       10.2.    The Preferred Bidder shall be considered to be the “Successful Bidder”
                upon
               (a)     continuing to be in compliance with all the terms and conditions of
                       eligibility;
               (b)     payment of the second instalment of the Upfront Payment which
                       INR XXX (Rupees XXX only) furnishing the Performance Security
                       pursuant to the Auction Rules, which

               (c)
                       shall be valid for the period specified in the MDPA, for an amount
                       equal to INR [XXX] (Rupees XXX only). Pursuant to sub-rule (1) of
                       rule 12 of the Auction Rules, the Performance Security
                       shall be adjusted every five years so that it continues to
                       correspond to 0.50% of the reassessed value of estimated resources
                       including the value of any newly discovered mineral that may be
                       included in the mining lease deed on its discovery determined in
                       accordance with the Auction Rules. In such case, bank guarantee
                       constituting the Performance Security shall be substituted with another
                       bank guarantee of the same value issued in accordance with this Clause
                       10.2, which is for the revised amount or if the Performance Security has
                       been provided through a security deposit, additional amount towards
                       security deposit shall be provided;

                 (d) satisfying the conditions specified in clause (b) of sub-section (2) of
                       section 5 of the Act with respect to a mining plan.

       10.3.    Execution of Mine Development and Production Agreement:
                The State Government and the Successful Bidder shall enter into the MDPA
                upon the Successful Bidder having obtained all consents, approvals, permits, no-
                objections and the like as may         be required under Applicable Law for
                commencement of mining operations.

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10.4.   Grant of mining lease:
         Subsequent to execution of the MDPA, the Successful Bidder shall pay the third
         instalment of the Upfront Payment which INR [XXX] (Rupees XXX only). Upon
         such payment the State Government shall grant a mining lease to the Successful
         Bidder within a period of 30 days from the date of payment and shall be subject to
         the provisions of the Act and the Rules made thereunder. The date of the
         commencement of the period for which a mining lease is granted shall be the date
         on which a duly executed mining lease is registered.

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11.      Timetable

         The following timetable shall apply to the tender process. The timetable may be
         amended by the State Government through issuance of an addendum to the Tender
         Document.

Sl.                                                           Tentative
         Event Description                                    schedule          Date
No.

Stage I – E-auction process for selection of Preferred Bidder

         Publication of notice inviting tender in at least
         one English national newspaper and one local
  1.                                                               T0
         language newspaper and on the State
         Government website

  2.     Commencement of sale of Tender Document
                                                                   T0

  3.     Last date for sale of Tender Document.                   T0+15

  4.     Last date of receiving queries from Bidders              T0+25

  5.     Pre-bid conference                                       T0+31

         Last date for responses to queries by the State
  6.                                                              T0+40
         Government

         Bid Due Date (Technical + Initial Price Offer)
  7.                                                              T0+45
         (On or before 3 pm IST)

  8.     Opening of the Technical Bids                            T0+46

  9.     Start date for examination of the Technical Bids         T0+46

  10.    Announcement of the Technically Qualified Bidders        T0+60

         Training and mock-auctions for all the Technically
  11.    Qualified Bidders on e-auction platform by the e-
                                                                  T0+62
         auction platform provider

         Opening of initial price offers of Technically
         Qualified Bidders and intimation of Qualified
  12.    Bidders two days prior to the scheduled date             T0+66
         of e-auction of the respective mineral block
         (to Qualified Bidders only)

        23
Sl.                                                           Tentative
        Event Description                                     schedule          Date
No.
        Conduct of ascending forward electronic auction
 13.    and submission of Final Price Offer on the                T0+68
        electronic auction platform

 14.    Announcement of Preferred Bidder                          T0+68

        Payment of first instalment (10%) of Upfront
 15.                                                              T0+98
        Payment by the Preferred Bidder for mining lease

        Issuance of      letter   of   intent   by   State
 16.                                                             T0+105
        Government

Stage II after Preferred Bidder obtains all necessary clearances/ approvals from various
government agencies/ departments
        Submission of Performance Security and Mining
        Plan along with second installment (10%) of Upfront        T1
  1.
        Payment by the Preferred Bidder to become
        Successful Bidder

        Issuance of order by State Government
  2.                                                             T1+ 10
        acknowledging as the Successful Bidder

        Mine Development Production Agreement (MDPA)
        to be executed between State Government &
        Successful Bidder after payment of third instalment
  3.    (80%) of Upfront Payment; mining lease to be             T1+ 20
        executed by State Government.
        Successful Bidder to become holder of mining
        lease.

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12.    Payments by the Successful Bidder

       12.1.   Upfront Payment

               The Upfront Payment paid by the Successful Bidder shall be adjusted in full
               against the amount payable in accordance with the percentage of Value of Mineral
               Despatched quoted as the Final Price Offer at the earliest on commencement of
               production of mineral(s).

       12.2.   Periodic payments

               A holder of mining lease shall make such payments as specified in rule 13 of the
               Auction Rules. It is clarified that, the holder of mining lease shall make monthly
               payments with respect to the Value of Mineral Despatched or the minimum
               production requirement as specified in the MDPA, whichever is higher.

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13.    General conditions regarding tender process

       13.1.         Submission of Technical Bid
       13.1.1. The Technical Bid shall comprise of the following:

                         (a)   Bid letter in the format specified in Part B of Schedule I (Format of bid
                               letter);
                         (b)   Bid Security in form of a bank guarantee for an amount equal to INR
                               [XXX] (Rupees XXX only) in the format specified in Part C of Schedule
                               I (Format of Bid Security), which shall be subject to Clause 14;

                         (c)   In case of Bidder being a company, a power of attorney in the format
                               specified in Part D of Schedule I (Format of power of attorney)
                               authorizing the signatory of the bid to participate in the tender process
                               and do all acts pursuant thereto on behalf of the Bidder, including usage
                               of the digital signature on behalf of the Bidder. In case of Bidder being
                               an individual, power of attorney would not be required but such individual
                               must personally sign;
                         (d)   Affidavit in the format specified in Part E of Schedule I (Format of affidavit);
                               and
                         (e)   In case of Bidder being a company, duly certified copy of the corporate
                               authorisation, such as board resolution to participate in the tender
                               process and submit a bid.

           13.1.2.    The Technical Bid shall be submitted on the electronic platform and the duly
                      executed original physical copies must be sent to the following address so
                      that they are received on or prior to the Bid Due Date and Time, failing which
                      the Technical Bid shall be deemed to be not received.

                      Director Mines
                      Department of Industries, Mines & Geology, Government of Jharkhand,
                      Third Floor, Yojana Bhawan,
                      Nepal House, Doranda,
                      Ranchi, Jharkhand- 834002.

       13.2.         Language
                     The Bid and all communications in relation to or concerning the Tender Document
                     and the Bid are required to be in the English language.

      26
13.3.        Documents and information

              The documents including this Tender Document and all attached documents,
              provided by the State Government are and shall remain or become the properties
              of the State Government and are transmitted to the Bidders solely for the
              purpose of preparation and the submission of a bid in accordance herewith.
              Bidders are required to treat all such information as strictly confidential and
              shall not use it for any purpose other than for preparation and submission of their
              bid. The provisions of this Clause shall also apply to bids and all other documents
              submitted by the Bidders in relation to the bid, and the State Government will
              not return to the Bidders any bid, document or any information provided along
              therewith.

 13.4.        Overriding effect
              If there is a conflict between the mining lease which is inclusive of the MDPA and
              this Tender Document, the mining lease which is inclusive of the MDPA would have
              overriding effect.

 13.5.        Cost of bidding
              The Bidders shall be responsible for all of the costs associated with the preparation
              of their bids and their participation in the tender process. The State Government
              will not be responsible or in any way liable for such costs, regardless of the conduct
              or outcome of the tender process.

 13.6.        Verification of information by the Bidders
     13.6.1     It shall be deemed that by submitting a bid, the Bidder has

                  (a)      made a complete and careful examination of the Tender Document
                           and unconditionally and irrevocably accepted the terms thereof;
                  (b)      reviewed all relevant information provided by the State Government,
                           as may be relevant to the bid;
                  (c)      accepted the risk of inadequacy, error or mistake in the information
                           provided in the Tender Document or furnished by or on behalf of
                           the State Government relating to any of the matters related to the
                           e-auction process.
                  (d)      satisfied itself about all matters regarding the e-auction process for
                           submitting an informed bid, in accordance with this Tender Document
                           and performance of all of its obligations;
                  (e)      acknowledged and agreed that inadequacy, lack of completeness
                           or incorrectness of information provided in the Tender Document

27
or ignorance of any of the matters related to the e-auction process
                           hereinabove shall not be a basis for any claim for compensation,
                           damages, extension of time for performance of its obligations, loss
                           of profits etc. from the State Government, or a ground for termination
                           of the MDPA by the Successful Bidder; and
                  (f)      agreed to be bound by the undertakings provided by it under and
                           in terms hereof.
     13.6.2      The State Government shall not be liable for any omission, mistake or error in
                  respect of any of the information provided or on account of any matter or thing
                  arising out of or concerning or relating to the Tender Document or the tender
                  process, including any error or mistake therein or in any information or data given
                  by the State Government.

 13.7.        Verification by the State Government and disqualification
        13.7.1 The State Government reserves the right to verify all statements, information
                  and documents submitted by the Bidder in response to the Tender Document
                  and the Bidder shall, when so required by the State Government, make
                  available all such information, evidence and documents as may be
                  necessary for such verification. Any such verification or lack of such
                  verification by the State Government shall not relieve the Bidder of its
                  obligations or liabilities hereunder nor will it affect any rights of the State
                  Government thereunder.

        13.7.2 The State Government reserves the right to reject any bid, and appropriate
                  the entire Bid Security if:
                a)       at any time, a misrepresentation is made or uncovered,
                b)       the Bidder does not provide, within the time specified by the State
                         Government, the supplemental information sought by the               State
                         Government for evaluation of the bid, or
                c)       any act or omission of the Bidder results in violation of or non-
                         compliance with the Act, the rules thereunder, this Tender Document,
                         or any other document referred therein or issued pursuant thereto
                         or any Applicable Law relevant for the tender process.

        13.7.3 Any rejection of a bid under Clause 13.7.2 may lead to the disqualification
                  of the Bidder for bidding for any e-auction or allotment conducted by the
                  State Government for a period of 5 years             starting from the date of
                  appropriation of the Bid Security or any other earlier date specified by the State
                  Government.

28
13.7.4 In the aforementioned events, the State Government shall be entitled to forfeit
             and appropriate the Bid Security or Performance Security, as the case may
             be, without prejudice to any other right or remedy that may be available to
             the State Government under the Tender Document, or otherwise, without
             any liability whatsoever.

 13.8.   Amendment of Tender Document
     13.8.1 At any time prior to the Bid Due Date, the State Government may, for any
             reason, whether at its own initiative or in response to clarifications requested
             by a Bidder, amend the Tender Document.
     13.8.2 Any amendment issued hereunder will be in writing and shall be made
             available to all the Bidders and shall be deemed to be part of the Tender
             Document.
     13.8.3 In order to afford the Bidders a reasonable time for taking an amendment
             into account, or for any other reason, the State Government may,
             in its sole discretion, extend the Bid Due Date in accordance with Clause
             13.9.

 13.9.   Bid Due Date and extension
     13.9.1 Technical Bids should be uploaded and the documents required to be
             submitted physically in original pursuant to Clause 13.1.2 must be received
             before the Bid Due Date. Technical Bids received by the State Government
             after the specified time on the Bid Due Date shall not be eligible for
             consideration and shall be summarily rejected.
     13.9.2 The State Government may, in its sole discretion, extend the Bid Due Date
             by issuing an amendment that is made available to all Bidders.

 13.10. Modifications/ substitution/ withdrawal of bids
     13.10.1 The Bidders may modify, substitute or withdraw its Technical Bid after
             submission, prior to the Bid Due Date. No Technical Bid shall be modified,
             substituted or withdrawn by the Bidders on or after the Bid Due Date,
             unless the same has been expressly sought by the State Government.

 13.11. Rejection of bids
     13.11.1. Notwithstanding anything contained in this Tender Document, the State
            Government reserves the right to reject any bid and/ or to annul the tender
            process and reject all bids at any time without any liability or any obligation
            for such acceptance, rejection or annulment, and without assigning any
            reasons thereof.

29
13.11.2. In case such cancellation is pursuant to non-compliance by the relevant
             Bidders vis-à-vis submissions of bid then the State Government reserves the
             right to appropriate the relevant Bid Security submitted by such non-compliant
             Bidders.
     13.11.3. The State Government reserves the right not to proceed with the tender process
             at any time, without notice or liability, and to reject any bid without assigning
             any reasons.
     13.11.4. Without prejudice to the generality of the foregoing, the State Government
             reserves the right to reject any bid on any criteria specified in this Tender
             Document, including without limitation, the following:
             a)    bids have not been submitted with all the information and details
                   listed in this Tender Document.
              b)    bid is not in conforming to the terms of Clause 8.1(A)(b) of this Tender
                    Document.
              c)    bids have been submitted without Bid Security or period of validity.
              d)    bids have otherwise not been submitted in accordance with the
                    Tender Document.

 13.12. Validity of bids

         The initial price offer shall be valid for a period of 180 days from the Bid Due Date.
         If the second round of e-auction is not conducted within a period of 180 days from
         the Bid Due Date, then the e-auction process will be annulled and the State
         Government will refund the price of Tender Document to the Bidders.

 13.13. Change affecting the Bidder
         Upon submission of the Technical Bid, any change affecting the Bidder regarding
         compliance with the eligibility conditions shall result in disqualification of the
         Bidder. Any change in any information submitted by the Bidder must be
         immediately communicated to the State Government.

 13.14. Minor deviations
         The State Government may permit minor deviations from the requirements of this
         Tender Documents. It is clarified that such minor deviation would not be permitted
         in matters related to eligibility and shall be permitted only with respect to
         procedural requirements. The decision of the State Government regarding
         what constitutes minor deviation shall be final and binding.

30
14.    Bid Security

             14.1.    The Bidder shall furnish as part of its Technical Bid, a security in the form
                      of a bank guarantee payable at Ranchi by a Scheduled Bank as listed in
                      the Second Schedule of the Reserve Bank of India Act, 1934, excluding
                      those listed under the headings of Gramin Banks, Urban Co-operative
                      Banks and State Co-operative Banks, in favor of the State Government
                      in substantially the same format as prescribed at Part C of Schedule I
                      (Format of bid security), and having a validity period of not less than 240
                      days from the Bid Due Date, inclusive of a claim period of 60 days, and
                      may be substituted with another bank guarantee of the same value issued
                      in accordance with this Clause, which is valid for an extended period
                      as may be mutually agreed between the State Government and the
                      Bidder from time to time.

             14.2.    The Bid Security shall be for INR [XXX] (Rupees XXX only).

             14.3.    Save and except as provided in this Tender Document, the Bid Security
                      of unsuccessful Bidders will be returned by the State Government,
                      without any interest, as promptly as possible.

             14.4.    The Successful Bidder’s Bid Security will be returned, without any
                      interest, upon furnishing of the Performance Security in accordance with
                      the provisions thereof.

             14.5.    The State Government shall be entitled to forfeit and appropriate the
                      Bid Security as damages, amongst others in any of the events specified
                      in this Tender Document. The Bidder, by submitting its bid pursuant to
                      this Tender Document, shall be deemed to have acknowledged and
                      confirmed that the State Government will suffer loss and damage on
                      account of withdrawal of its bid or for any other default by the Bidder
                      during the period of bid validity as specified in this Tender Document. No
                      relaxation of any kind on Bid Security shall be given to any Bidder.

             14.6.    The Bid Security shall be forfeited as damages without prejudice to any
                      other right or remedy that may be available to the State Government
                      under the Tender Document and/or otherwise, under, inter alia, the
                      following conditions:

               (a)    If a Bidder submits a Technical Bid which is not conforming to this
                      Tender Document, the Act or the rules framed thereunder or submits an
                      initial price offer which is less than the Reserve Price;

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